Describe the difference between the following sales forecasting techniques: Delphi technique, trend analysis, and econometric models.
What will be an ideal response?
The Delphi technique is a qualitative technique that has members of the forecasting group submit individually prepared forecasts anonymously. Each group member receives copies of all of the forecasts, discusses them, and reconciles them. Each member prepares a new forecast based on this discussion. The process is repeated until a single estimate is agreed upon. Trend analysis is a statistical technique that prepares a forecast based on past sales data only. Econometric models are statistical models that use a variety of economic data in a regression analysis to prepare a sales forecast.
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Answer the following statements true (T) or false (F)
1) When using the direct method to account for uncollectibles, an allowance account is used. 2) When using the allowance method to account for uncollectibles, the balance sheet approaches require two steps in determining bad debts expense. 3) Businesses must estimate the amount of bad debts expense at the end of the accounting period only when using the balance sheet approaches. 4) The interest period extends from the original date of the note to the maturity date. 5) The maturity value of a note is the sum of the principal minus interest due at maturity. 6) Interest is generally stated as a monthly rate on notes receivable.
A manufacturing company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet. The balance of Accounts Receivable can be obtained from the ________.
A) inventory, purchases and cost of goods sold budget B) schedule of cash receipts from customers C) capital expenditures budget D) selling and administrative expenses budget
The party that has the right to exercise a call option on callable bonds is:
A. The bond trustee. B. The bond issuer. C. The bondholder. D. The bond indenture. E. The bond underwriter.
Memphis Company's May sales budget calls for sales of $900,000. The store expects to begin May with $50,000 of inventory and to end the month with $55,000 of inventory. Gross margin is typically 45% of sales. Compute the budgeted cost of merchandise purchases for May.
A. $495,000. B. $500,000. C. $460,000. D. $550,000. E. $490,000.